London Daily

Focus on the big picture.
Sunday, Nov 16, 2025

UK economy flatlines with no growth in February as strikes hit productivity

UK economy flatlines with no growth in February as strikes hit productivity

The lack of growth was unexpected - 0.1% had been forecast.

The UK economy flatlined in February, with no growth in GDP, according to official figures.

Civil service strikes and low energy consumption offset growth in areas such as construction - which grew 2.4%, the Office for National Statistics (ONS) data showed.

The flatlining was unexpected. Economists polled by the Reuters news agency had forecast slight growth of 0.1% for the month.

ONS figures showed services production fell by 0.1% in the month, following growth of 0.7% in January 2023.

The largest contributor to negative growth in the services industry was education, which fell 1.7% in a month where teacher strikes took place.

Another strikes hit sector, public administration, was the second largest contributor to negative growth in the services industry.

Construction grew thanks to repair works taking place and retail output increased as many shops had a "buoyant month", the ONS's director of economic statistics, Darren Morgan said.

Unseasonably mild and dry weather led to reduced production of electricity and gas, Mr Morgan added. Output in the arts, entertainment and recreation industries grew, however.

It followed growth of 0.4% in January and confirmation the UK economy avoided recession in the second half of 2022 and actually grew 0.1% in the final three months of the year.


The most recent projections from the independent economic forecaster, the Office for Budget Responsibility (OBR), said the UK will avoid recession - defined as two consecutive quarters of negative growth - in 2023, despite previous predictions.

But the economy will still shrink overall this year by an expected 0.2%, and the fiscal watchdog warned living standards are to fall by the largest amount since records began.

On a quarterly basis, the economy grew slightly. In the three months to February, the ONS said GDP, a measure of economic growth, increased by 0.1%.

However, responding to the flatlining, Chancellor Jeremy Hunt remained upbeat about the figures.

He said: "The economic outlook is looking brighter than expected - GDP grew in the three months to February and we are set to avoid recession thanks to the steps we have taken through a massive package of cost of living support for families and radical reforms to boost the jobs market and business investment."

But Labour's shadow chancellor Rachel Reeves criticised the government's record on economic growth.

She said: "Despite our enormous promise and potential as a country, Britain is still lagging behind on the global stage with growth on the floor.

"The reality of growth inching along is families worse off, high streets in decline and a weaker economy that leaves us vulnerable to shocks.

"These results are exactly why Labour's mission to secure the highest sustained growth in the G7 is so important - it's that level of ambition that we need to strengthen our economy, get our high streets thriving again and make families across every part of Britain better off."

The Bank of England's chief economist said the flatlining economy was "somewhat disappointing" but was still a significant improvement from its previous forecast of a recession.

Huw Pill, speaking at a panel event with Market News International Connect, said: "Last summer we were forecasting a pretty deep, and certainly a very prolonged, recession in the UK.

"Relative to that, the flatlining of the economy that we are seeing, in terms of the evolution of GDP, is a quite significant improvement."

Newsletter

Related Articles

0:00
0:00
Close
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
×